The Nonprofit Outcomes Toolbox E-Book

Robert M. Penna

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: Wiley Nonprofit Authority
• Sprache: Englisch

Seitenzahl: 590

Veröffentlichungsjahr: 2011

Beschreibung

An invaluable guide to the outcome-based tools needed to help nonprofit organizations increase their effectiveness The Nonprofit Outcomes Toolbox identifies stages in the use of outcomes and shows you how to use specific facets of existing outcome models to improve performance and achieve meaningful results. Going beyond the familiar limits of the sector, this volume also illustrates how tools and approaches long in use in the corporate sector can be of great analytical and practical use to nonprofit, philanthropic, and governmental organizations . An outstanding resource for organizational and program leaders interested in improving performance, there is nothing else like this work currently available. * Shows how to identify and set meaningful, sustainable outcomes * Illustrates how to track and manage with outcomes * Offers guidance in assessing capacity, and using outcome-based communications * Features a companion Web site with the tools found in this book Providing the tools and explanations needed to achieve program success, this book is a complete resource for the nonprofit, governmental, or philanthropic professional striving for greater effectiveness in programs or organizations.

Leseprobe

Contents

Image Credits

Foreword

A Word to the Reader : How to Use This Book

Author’s Notes

Acknowledgments

Introduction

Part One : The Basics

Chapter 1 : Approaching Outcomes

Outcomes: The Third Stage of Management

The Problem Approach

The Activity Approach

The Process Approach

The Vision Approach

In Summary

Chapter 2 : The Language of Outcomes

Understanding the Language

Shifting Perspectives

But

Chapter 3 : The Shape of Outcomes

The Importance of a Target

Characteristics of Well-Defined Outcome Statements

Verifiable

Chapter 4 : Finding Your Outcomes

You Get What You Measure

Results-Based Accountability (RBA)

A Common Outcome Framework

Outcomes and Indicators

Condition/Status

Part Two : Working with Outcomes

Chapter 5 : Planning with Outcomes

Outcome Management Framework

Another Approach

Chapter 6 : The Capacity for Outcomes

VPP/SVP Capacity Assessment Tool6

The GTO Capacity Tool

Capacity Tool

Capacity Grid for Recruiting Potential Trainees

Capacity Grid for Recruiting Potential Trainees

Another Tool: SEED

Chapter 7 : Tracking with Outcomes

Chapter 8 : Learning with Outcomes

Data versus Information versus Knowledge

Chapter 9 : Communicating with Outcomes

The Smart Chart

Chapter 10 : Communicating Our Outcomes

Scales and Ladders

The Program Results Story

Three Core Questions: Audience, Content, and Flow

Part Three : Advanced Tools

Chapter 11 : The Power of Six Sigma

Chapter 12 : Keeping it all in Balance

Typical Scorecard

The Public Sector Scorecard

A Governmental Scorecard

A Social Sector Scorecard

An OASAS Scorecard

Chapter 13 : Budgeting with Outcomes

Chapter 14 : Outcomes in Administration

Writing the Results Description

Part Four : Other Tools and Perspectives

Chapter 15 : A Different View of Nonprofits

Chapter 16 : Thinking About Value

Chapter 17 : Building Value In

Chapter 18 : A Few Final Tools. . .

Looking for Trouble: FMEA

Gone Fishin’: A Cause and Effect Analysis

TRIZ: Considering the Contradictions

One Final Tool: Process Management

Process Documentation

Process Mapping

Value Stream Mapping

Conclusion : Wrapping It all Up

Appendix

Notes

About The Rensselaerville Institute

About Charity Navigator

About the Author

Index

Additional Praise for The Nonprofit Outcomes Toolbox

“Captures the essence of what you need to know about managing with outcomes, and it does it in an entertaining manner.”

—Dr. Len Bickman, Professor of Psychology, Psychiatry and Public Policy, Associate Dean for Research; Director, Center for Evaluation and Program Improvement, Vanderbilt University

“The Outcomes Toolbox is an outstanding resource for funders and nonprofits who need to build their capacity to: understand the language of outcomes, the measurement of outcomes, the use of outcomes information. It is a little like ‘everything you wanted to know about outcomes but were too afraid to ask.’ It draws upon the ‘best practices’ approaches to outcomes that are available in the literature, and it does it in an entertaining way. It is a good read.”

Dr. Abe Wandersman (Co-author of the Getting to Outcomes model), University of South Carolina

“This is an incredible work . . . the information just keeps on coming. It does not disappoint.”

Keith Pickett, Executive Director, Family and Children’s Services of the Capital Region

“...accessible and practical.”

Gary Bagley, Executive Director, New York Cares, Inc

“The Nonprofit Outcomes Toolbox is an excellent tutorial on the practical and effective use of outcomes. Penna’s presentation demonstrates how critically important it is for an organization’s leadership to clearly understand the outcomes it seeks to achieve, and to institutionalize outcome assessment within the culture of the organization. Practitioners will find this a must read; and the use of these tools will result in a profound benefit for those who fully embrace the message.”

C. T. O’Donnell II, PhD, President & CEO, Byrnes Health Education Center

“While the primary audience for this rich compendium is the nonprofit community, it is arguably even more important for those leading and managing government. Since government implements many of its programs through contract relationships with not profit groups, it is incumbent on them to understand the most effective ways to insure outcomes for citizens from these relationships. This resource is an essential aid to that mission.”

William J. Phillips, Associate Commissioner, Outcome Management and System Investment, New York State Office of Alcoholism and Substance Abuse Services

“I have had the pleasure of reading an advanced copy of The Outcomes Toolbox. It definitely represents a significant contribution to what I would call ‘thinking about outcomes.’ Penna has laid out the landscape in a far more comprehensive way than anyone else has to date. His exposition allows nonprofits at any stage of thinking about outcomes to place their understanding and assessment needs within a rich and universal framework. It allows those charged with making method decisions to be far better informed about approaches and the logic behind them, as well as better positioned to explain their thinking and recommendations to co-workers and stakeholders. Then, having descriptions and contact information regarding some of the best tools available is icing on the cake.”

Dr. Barry Kibel (Author of Journey Mapping), Co-Director, SEED

“Anyone who is looking to plan, design, and implement a successful and effective program, or looking to improve a program’s effectiveness should read this book. It will be extremely beneficial in helping to create quality programs that can answer the ‘so what’ question.”

Andrea L. Reynolds, President and CEO, Community Foundation of Dutchess County

The Wiley Nonprofit Authority series provides practical information, tools, and insights to nonprofit professionals responsible for the financial administration & legal compliance of their organizations, as well as the advisors who serve them (e.g., attorneys, accountants, financial planners).

Copyright © 2011 by Robert M. Penna. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate percopy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, [phone], fax [phone], or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, [phone], fax [phone], or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Library of Congress Cataloging-in-Publication Data:

Penna, Robert Mark.

The nonprofit outcomes toolbox: a complete guide to program effectiveness, performance measurement, and results / Robert M. Penna; foreword by Ken Berger.

p. cm.—(Wiley nonprofit authority; 1)

Includes index.

ISBN 978-1-118-00450-0; ISBN 978-1-118-04444-5 (ebk); ISBN 978-1-118-04445-2 (ebk); ISBN 978-1-118-04446-9

1. Nonprofit organizations—Management—Evaluation. 2. Social service—Evaluation. I. Title.

HD62.6.P46 2011

658′.048—dc22 2010053524

IMAGE CREDITS

“City of Tomorrow” image courtesy of the Frank R. Paul Estate, and Texas A&M University Cushing Memorial Library (page 14)

Tom Sawyer image Film still from Tom Sawyer: Interstate Collection, Harry Ransom Humanities Research Center. The University of Texas at Austin (page 22)

Tinkertoy image TINKERTOY® & ©2011 Hasbro, Inc. Used with permission. (page 83)

“Art Is a Journey” image: © Goh I-Ming (page 123)

Puzzlemania image © 2010 USAopoly, Inc. used with Permission (page 135)

Superman “S” shield ™ & © DC Comics (page 137)

“If a tree . . .” cartoon © Glenn Foden. www.CartoonStock.com (page 161)

Smart Chart: © Spitfire Strategies LLC [2005] Smart Chart is a registered trademark of Spitfire Strategies, LLC and is used in this work under license. Excerpts and images from the Smart Chart are reprinted with permission. (page 162)

Vintage United Airlines image courtesy of the John Hartman Center for Sales, Advertising and Marketing History of Duke University (page 189)

Batman image © DC Comics (page 193)

“Story flow” graphs By permission of the Kurt Vonnegut Copyright Trust, Donald C. Farber, Trustee (page 207)

No Exit image © Andy Singer (page 216)

Crayola Crayon image: Image courtesy of Crayola, LLC, used with permission. © 2008 Crayola (page 233)

PEANUTS image Peanuts: © 2010 Peanuts Worldwide LLC., dist by UFS, Inc. (page 262)

Bazooka Joe characters © The Topps Company, Inc (page 318)

Capacity Assessment Tool: The original version of the Capacity Assessment Tool was created by McKinsey & Company for Venture Philanthropy Partners and published in Effective Capacity Building in Nonprofit Organizations. It was modified and assembled in electronic format by Blueprint Research & Design, Inc., for Social Venture Partners Seattle and is used with permission of VPP.

FOREWORD

The Outcomes Toolbox could not have come out at a better time.

We are at the beginning of a tipping point in the nonprofit sector in the United States, and the notion of donating to charity is slowly but surely being replaced, at least among some leading funders, by the idea of social investing. In other words, the awareness is growing that when you provide support to a nonprofit, you have a right to expect a return on that investment—meaningful change in communities and people’s lives (something of social value). In addition, the assumption that all donations help (result in positive social value), is crumbling under the lack of evidence to support the notion. In fact, most nonprofits do not have objective data to prove that they provide outcomes—where meaningful change is measurable, sustainable, linkable to efforts, and there is accountability for results. Furthermore, most do not have the foggiest notion about their outcomes, because they do not have an internal performance management system to hold them accountable or even begin to compile such evidence.

The good news is that there have been some noteworthy developments in the evolution of tools that are available to improve the performance of nonprofits. The Outcomes Toolbox is an achievement in compiling some of the most significant strides that have been made in this area. The book digs deep and provides us with many jewels that can help nonprofits begin to perform more effectively and hopefully restore our confidence in the sector.

Dr. Penna and I both share a dream that, thanks to these tools, some day the most effective and efficient nonprofits will get the vast majority of investment in the time and treasure of our society. No longer will a heartrending story about how a nonprofit helped one individual suffice. Stories are important, but without data to back them up, they are largely meaningless in the bigger picture of changing our world for the better.

Therefore, we hope over time the public will increasingly demand to see evidence of high performance and impact. As Dr. David Hunter, a consultant and member of the Alliance for Effective Social Investing suggests, that means social investors (with the help of groups like Charity Navigator!) will insist that the nonprofit they are considering has capable and visionary leadership that care about outcomes. They will require evidence that the organization is outcome driven from top to bottom. They will also need to know that when the organization measures its outcomes and the results are not satisfactory, the organization changes its processes and keeps trying new approaches until it gets it right. In addition, they will only support organizations that hold themselves openly accountable to all of their constituents—their funders, their clients, and the community at large. The Outcomes Toolbox is a place for nonprofit leaders to begin on the road to accomplish all this.

Looking to the future, Andrew Wolk, the CEO of Root Cause, suggests that as the outcomes revolution takes hold, start-up nonprofits will have key outcome indicators, young organizations will at least have a simple performance management system, and more seasoned organizations will have a full performance evaluation system with external evaluation. And at the top of the heap will be proven organizations that can show impact. That means they will be able to provide robust, objective evidence of meaningful change in the lives of most of the people and communities served. They can prove it because, as the Hewlett Foundation identifies in its gold standard of performance information, the nonprofit has scientifically valid outcome and social impact data. Wherever your organization is in its lifecycle, The Outcomes Toolbox can help you move forward toward that gold standard.

The question of whether a nonprofit measures its outcomes is critically important to the future of nonprofits in America and throughout the world. It is a question that represents a battle for the very soul of the nonprofit sector. The outcome of this contest will determine whether we will continue to flounder around never knowing whether we are truly helping people, or measure, manage, and deliver good outcomes. The Outcome Toolbox has provided us with the critical tools to fight the good fight so we can win this battle and make the world a much better place.

Ken Berger, President & CEO

Charity Navigator

Mahwah, New Jersey

A WORD TO THE READER

HOW TO USE THIS BOOK

The Outcomes Toolbox has been designed for use in two ways: Either it can be read through from beginning to end, or the various chapters can be referenced as stand-alone primers on the subjects they individually cover.

Reading through from beginning to end can be seen as a journey, taking readers from the essential concepts involved in the use of Outcomes to common applications and situations, ultimately introducing them to more advanced outcome-related tools used in more complex analysis and program design.

So how should you use The Outcomes Toolbox?

If you turn to the Contents (a step we recommend) you will see that the book itself is divided into four parts: The Basics (chapters 1–4), Working with Outcomes (chapters 5–10), Advanced Tools (chapters 11–14), and Other Tools and Perspectives (chapters 15–18).

Where you begin is entirely up to you.

If you are new to the use of outcomes, are looking for a refresher on underlying concepts and preliminary steps, or are seeking guidance on beginning the application of Outcomes to your work, you may find it most useful to begin at the beginning and initially focus primarily on the Basics section. For example, among the topics covered in the Basics section are such things as putting outcomes into an overall managerial context, contrasting the Outcomes Approach to several more common approaches to program design, the vocabulary of outcomes, the characteristics of good outcomes, and identifying outcomes for your program. In other words, The Basics.

For those already possessing a basic knowledge of outcomes, it might be best to begin with Part Two, or focus on specific chapters within that section. Those who have mastered the materials in the Basics section can also move onto this section to learn about specific applications of the concepts to which they were introduced in Part One.

Planning with Outcomes, the different levels of organizational capacity and capacity assessment, using Outcomes to track progress, the key characteristics of a good Lessons Learned system (and the importance of having one!), and outcome-based communications, are among the topics covered in Part Two.

Part Three, Advanced Tools, introduces readers to, among other things, several concepts that are already fairly current in the corporate, for-profit world but that have remarkable application to the social section of nonprofit, philanthropic, and governmental organizations. Among these are specific tools from the Six Sigma methodology, an interesting use of the Balanced Scorecard, key insights from the service economy, and an array of ideas taken from such disciplines as Value Engineering, Process Mapping, inventive problem solving, and Failure Mode Effect Analysis. Also covered in this section are the application of outcome thinking to personnel recruitment and evaluation, budgeting with outcomes, a valuable discussion of the differences between cost, worth, and value, and the creation of a Value Proposition for your program or organization.

Understanding that our audience is varied, that not everyone will have the same level of knowledge or comfort working with outcomes, and that different readers may have differing concerns or immediate needs, we try in these pages to cover a broad range of topics and levels of skill using outcomes. It is our hope and intention that whatever your interest in outcomes or your level of experience using outcome-related concepts, that you will find here useful tools that lead you, your program, and your organization to greater effectiveness on behalf of those you serve.

AUTHOR’S NOTES

I

In this volume we explore a number of outcome-based tools—some might call them frameworks, approaches, or models—and introduce them within the context of chapters primarily devoted to a particular programmatic or organizational need.

Reading through the book, the reader will come to know some, like Spitfire’s Smart Chart and The Urban Institute and Center for What Works’ Common Outcome Framework, which are expressly designed to operate and be beneficial within the context within which they are presented. The Smart Chart, for example, is a tool for outcome-based communication and appears in a chapter devoted to that subject.

One tool, the Capacity Assessment Tool, created by McKinsey & Company for Venture Philanthropy Partners and modified and assembled in electronic format by Blueprint Research & Design, Inc., for Social Venture Partners Seattle, was designed for one particular application, but, as explained in Chapter Six, can be modified for use in closely related situations.

Other tools, however, specifically Dr. Barry Kibel’s Journey Mapping, Mark Friedman’s Results Based Accountability, Yellow Wood Associates’ You Get What You Measure® framework, The Rensselaerville Institute’s Outcome Management approach, and Getting to OutcomesTM, created by Dr. Abe Wandersman and his colleagues Dr. Matthew Chinman and Dr. Pamela Imm, all have broad applicability through a range of programmatic stages, from program design and planning, to tracking, managing, evaluation, and learning. Although they might be presented here as associated with a specific challenge, this presentation is not in any way meant to imply or suggest that their use and, more importantly, their usefulness, is limited merely to the situation in which they are presented. They are offered in this way merely as a suggested solution to a particular challenge, but all share the characteristic of being very broadly and fruitfully applicable to programs and organizations.

The reader is therefore invited to avail himself of the reference information given in each case, to contact the respective authors of these approaches, and to fully learn how any or all of these tools can be most beneficially applied to his particular programmatic situation or organizational needs. All the authors of these tools stand ready to assist you in improving the effectiveness of your programs and organization, and the reader is strongly urged to reach out and make contact. As a final note, we add that our presentations of the various tools in this book, specifically Spitfire’s SmartChart, The Urban Institute and Center for What Works’ Common Outcome Framework, the Capacity Assessment Tool, Dr. Barry Kibel’s Journey Mapping, Mark Friedman’s Results-Based AccountabilityTM Yellow Wood Associates’ You Get What You Measure® framework, The Rensselaerville Institute’s Outcome Management approach, and the Rand Corporation’s Gettingto Outcomes™, created by Dr. Abe Wandersman and his colleagues Dr. Matthew Chinman, and Dr. Pamela Imm, are based upon our interpretation of these formats. No endorsement of those presentations by the authors or owners of these frameworks is suggested or implied; and any mistakes or misinterpretations are ours alone.

II

Are They Charities or Nonprofits?

As the reader thumbs through this book she will see the term nonprofit used quite often. The question has been asked, however, whether it is the right term, or even the only term we should use when speaking of organizations whose primary mission is social or human gain.

Government, for example, exists for no purpose but to work toward the good of its citizens, and many of the programs alluded to within these pages are indeed governmental programs. Similarly, philanthropies exist, in the main, to bring about the visions of social and human benefit that inspired their founders. We have attempted to cover these bases by occasionally making explicit reference to “governmental, philanthropic, and nonprofit organizations.”

Still, the term nonprofit does have its critics because some see it as too overly broad, yes, encompassing organizations that work for social good, but also covering trade associations, some private schools, chambers of commerce, employee benefit associations, and numerous other types of corporations recognized by the U.S. Tax Code. In fact, the code contains some twenty-eight subsets of organizations exempt from some federal income taxes and, functionally, from many other state and local taxes as well.

Charity Navigator,1 the independent nonprofit evaluator, tries to avoid confusion by using the eponymous term charity which, it notes, is used by the IRS to describe 501 (c) 3 corporations . . . which also happen to be the type of organization CN evaluates. But Webster’s dictionary defines a charity, as “a gift for public benefit purposes, or an institution founded by such a gift,” which sounds a lot like a philanthropy. Even Charity Navigator’s president, Ken Berger, agrees that the common understanding of the term charity does not fully capture the universe we are addressing in this volume: not-for-profit organizations that are working to provide social value.

It is neither the intention nor within the purview of this book to define which organizations are, irrespective of their tax code status, the right sort of nonprofit, nor which type can benefit from what is written in these pages. Charities, nonprofits, governmental agencies, or philanthropies—we welcome them all; and we urge our readers to do the same.

To paraphrase U.S. Supreme Court Justice Potter Stewart, when it comes to those organizations we have in mind, we believe our readers will know them when they see them.

ACKNOWLEDGMENTS

No work of the scope and intent we have attempted here is ever undertaken or successfully completed in a vacuum. While the author may be the one pounding away at the keyboard, the fact is that there are many people upon whose good will, cooperation, support, and friendship he or she depends. So it has been with this work. Without the input, feedback, suggestions, insights, and help so graciously given by many people and organizations, this book would still be just a rough idea that never came to fruition.

First and foremost, the author and sponsors, The Rensselaerville Institute and Charity Navigator, owe an enormous debt of gratitude to the William and Flora Hewlett Foundation for its support of this project. Without the interest and investment made by the Foundation, this book simply would never have been produced. We want to thank Jacob Harold, our Program Officer at the Foundation, for his patience, commitment to this project, and his hands-on involvement from the earliest days when this was merely a proposal, to his engagement in the formulation of the toolbox approach we took, and finally through development as it slowly became a reality. Whatever we have achieved here could not have been realized without the committed interest he showed whenever we reached out to him.

In a similar vein, we relied upon colleagues in the field, friends and contacts, both old and new, for their cooperation and insights. Among the new contacts we made were David Reeve, Shana Ratner, Holly Minch, and Max Moullin, and we would like to express our appreciation for the interest they took in this project, and for their willingness to share both their work and their informed perspectives.

Craig Hogan was, as always, extremely gracious in his response to our requests for information and guidance, as was Harry Hatry, who provided us very early on with his usual level of warm encouragement, keen insight, valuable information, and sage advice.

The reader will notice several familiar images throughout this book, and for them we owe a debt of thanks to the owners of those copyrighted images and registered trade-marks. In particular, we would like to thank Bill Engle, Administrator of the Frank R. Paul Estate, and Arely Perez of the Texas A&M University Cushing Memorial Library and Archives for their cooperation in obtaining for us the images and necessary permission to reproduce the work of Mr. Paul; Ms. Kathy Carpano and Ms. Jo-Ann Belisle at Hasbro, Inc.; Jeannete Best at USAopoly; Don Farber and the Kurt Vonnegut Estate; Deborah A. Lintvedt and her colleagues at Crayola, Inc.; Calune Eustache of United Media for her cooperation in our use of Charles Schultz’s PEANUTS characters; Sarah Weinblatt and Steve Wilson of the Harry Ransom Center at The University of Texas at Austin for their assistance in accessing the David O. Selznick collection of their library; the kind folks at Topps, Inc., who graciously allowed our use of the Bazooka Joe characters; and artists Andy Singer and Goh I-Ming for their permission to use their cartoon material. A very special note of appreciation is also due to Jay Kogan, Vice President and Deputy General Counsel of DC Comics, for his interest in this project, his invaluable cooperation, and for the guided tour. Thanks, Jay!

The look of the volume you are holding could not have been achieved without the work, commitment, and amazingly unwavering patience of Melissa Mykal Bataliin, Art Director and Manager of The Troy Book Makers. We would also like to thank Christianne Smith of Designsmith Studio and Deborah Miles Czech of Miles Ahead Communications for their work on the early stages of this project, particularly on its format and flow.

While we thank all of those listed above, in closing, the following notes of particularly deep appreciation and recognition must be made.

The support of John LaRocca, Vice President and Chief Operating Officer of the Rensselaerville Institute was vital in the production of this volume. His commitment to seeing this project through to the end was absolutely critical in moving it from an idea to a reality. Quite simply, without his support, this project never would have been completed.

As we noted before, throughout the course of this work we relied upon our colleagues in the outcomes field for advice, counsel, and feedback. In this regard, Mark Friedman, Barry Kibel, and Abe Wandersman went considerably above and beyond the call in their support and contributions. Their guidance, suggestions, prodding, and challenges were an irreplaceable resource . . . and their encouragement and support most of all.

Utterly invaluable has been the participation and support of Ken Berger, President & Chief Executive Officer of Charity Navigator. Seeing in this volume something of value to the field, and believing in the contribution it could make toward advancing effectiveness throughout the sector, Ken stepped forward at a critical time in the evolution of this project and literally snatched victory from the jaws of defeat. It is likely that without his involvement, you would not be reading this today. For his support, for his faith, and for his friendship, we will always be grateful.

Beyond the work of any author and the people who help and support him or her, few books would ever reach their intended audiences without the happy circumstance of their being brought to the attention of editors and publishers who are willing to consider publication. So it has been with this book; and we owe a large debt of gratitude to our friend Steven H. Goldberg, author of Billions of Drops in Millions of Buckets, for making the necessary introductions; and to our editor, Susan McDermott, for taking the chance. Special appreciation needs also be expressed to Jennifer MacDonald and Chris Gage at John Wiley & Sons for their patience and forbearance in the production of this volume.

On a very special note, the author also needs to acknowledge his deep gratitude to his personal cheering section: his wife Elise and daughter Sara, his sons Billy and Matthew, and his good friend, comrade, and colleague, Keith Pickett, all of whom urged him on, encouraged him, and picked him up, dusted him off, and set him going again when the task seemed too big, the obstacles and frustrations too daunting, and completion light years away. Without the consistent support of these caring individuals, this project would have never been finished. Ralph the Dog, big, hairy, and old, but ever attentive, should also be thanked for the constant companionship, his willing ear, and his knowing looks as these pages were researched, written, and edited.

Finally, nothing here would ever have happened without the dogged persistence of our friend and former colleague, Bill Phillips. As Vice President of the Rensselaerville Institute until moving to take a position in the executive branch of New York State government, Bill conceived this project, molded it, and nurtured and husbanded it through the proposal process. His steadfast belief in the value of this work to the field, of the potential contribution it could make, and in its ability to meet a very real need, was the driving force behind the launch of this effort. Whatever else his considerable accomplishments at the Institute may have been, this book is his legacy, and we can only hope that we have done it all due honor in the execution.

Albany, NY

March 2011

INTRODUCTION

The outcomes world is larger and more complex than we realized.

Welcome to the Outcomes Toolbox.

By way of introduction, perhaps the first and most basic questions to be answered are why this book was written . . . and why it is called a toolbox.

When we wrote Outcome Frameworks in 2004, our aim was help the practitioner make sense of the outcomes movement that has swept over program design, and program implementation and evaluation in the nonprofit, governmental, or philanthropic arenas—collectively called the social sector because of their shared focus on human and social gain—for the past decade or so.

Because of the multiple approaches to outcome management that developed during the movement’s early years, even for those familiar with the basic concepts of outcomes, the journey often seemed confusing, as this model or that model was mentioned, cited, or perhaps required by a grant maker . . . but while the practitioner’s actual experience might have been with another model or approach entirely. For those new to outcomes, the task could be even more daunting. New concepts, new ways of thinking (some that conflicted with past practice, and some of which just felt somehow counterintuitive) could make the task of understanding and implementing an outcomes orientation seem even more difficult.

Consultancy trainer Mike Cope likens the situation facing practitioners to “the last time you were lost on a trip,” and experienced a “sense of anxiety, confusion and fear of the unknown . . . in a place where there are no directions, guides or help of any kind.” Security and confidence, Cope maintains, come from finding a recognizable landmark, “something that gives you a stake in the ground and a basis on which to make a decision.” This sense of orientation and location, “the ability to find a reference point in times of turmoil and confusion,” is crucial, he says, to any decision process.1

Wanting to help provide that reference point, we tried to address a number of points in Frameworks. Among them were the basic concept of outcomes as applied to nonprofit programs, the origins of the outcomes movement, and, most importantly, various formats, approaches, formulas and frameworks that had been developed to help practitioners use the outcomes concept to achieve greater performance in their programs.

While the response to the book indicated that we largely hit our intended target, in the years since the publication of Frameworks we have learned a number of things. One of the first was that the outcomes world had grown larger and more complex than we had realized.

Where the concept of outcomes in the sector had initially and overwhelmingly been seen in the areas of direct social and human services, increasingly we found that outcome management was being asked for in such areas as advocacy, the arts, and the environment. We learned of organizations applying the concept to areas beyond program development and implementation, emulating the corporate world in their use of an Outcomes Approach to the demands of organizational administration. We also learned of new frameworks that had been developed and of sector organizations that were using one of the corporate world’s most demanding outcome approaches.

At the same time, however, we also realized that while governmental and philanthropic investors were increasingly asking organizations to identify, manage toward, and report on outcomes, the practitioners in these organizations, the managers of departments and programs, still lacked practical tools, techniques, and case examples to guide their outcome journey. They continue to struggle to understand the application of outcome management to their particular needs, and are asking for implementation tools that will take the concepts of outcomes out of the abstract and place them firmly into the practical. While Frameworks may have served the sector by giving practitioners that reference point we originally intended, offered a context within which to place the idea of outcome management, and introduced them to models with which they may have been unfamiliar, we were struck by the need for practical examples of how to use the kinds of models the book included. Our other aha! moment, however, is what led to the notion of this book as a toolbox.

If the only tool you have is a hammer, every problem is a nail.

—Abraham Maslow

In the years since Frameworks was issued, we came to realize from conversations, through firsthand experience running workshops based upon the book, and in other communications regarding its use, that we and our colleagues in the outcomes field had inadvertently done practitioners a disservice in the way we had offered training, coaching, and technical assistance regarding outcome models. The outcomes field is rich with formats, frameworks, and approaches; a lack of ideas is not the problem. Rather, we discovered that the problem is that many of these formats, from the storied Logic Model to Outcomes Funding & Management, are taught in something of a vacuum: A trainer proficient in Model A comes into an organization and trains staff and managers on that model. For a number of reasons, little if anything is said about other models . . . which has the unintended result of not only denying the trainees the benefit of other models’ strengths, but also leaves them with the impression that the model on which they are being trained is intended to and is capable of sufficing for all the needs, situations, and challenges they may face. But we knew from our research on Frameworks that this is simply not the case.

Some models are better, we knew, for program design, planning, implementation, management. Some are excellent resource alignment tools, and some excel when applied to the reporting of results and achievements. As we learned of new approaches or new applications that were not included in Frameworks, this insight only grew stronger. Each of the outcome models, each of the weapons in the outcome arsenal, has its strengths . . . but no one tool does it all, and no one alone will really suffice for the many needs, situations, challenges, and circumstances faced by practitioners in an ever-expanding world of outcomes application. However, we also realized that used in combination, or with a facet of one model applied to another framework, many of these challenges can be successfully met.

Any mechanic, artisan, or skilled do-it-yourselfer will tell you that the first step in doing a job right is to have the right tools. Any accomplished cook will tell you the same thing. Yes, there are workshop basics—a hammer, a screwdriver, a wrench—just as there are kitchen basics—a saucepan, a pot, and a paring knife. But as essential as these implements are, none suffice for all jobs. In the workshop, drills, saws, levels, and clamps add to the ability of someone to do a job properly. In the kitchen, blenders, sieves, whisks, and rollers add to the proper preparation of a meal. Beyond this, there are specialized variations on the basic tools—a dizzying array of different screwdrivers, wrenches, and knives that professionals and skilled amateurs use to do a job the right way. The key to success is to have and to use the right tool for the job, whether it is part of the official implements for a given task, whether it came in the same kit as the other tools you are using, and whether it is the same brand. If it works, a skilled professional will tell you, use it.

So, just as in Frameworks we set out to offer the field a set of reference points to the outcomes landscape, it is our desired outcome in publishing this work to present an accessible, practical, and functional guide—one that people will, in fact, use—to the successful application of outcome tools and techniques in such areas as program design and implementation, organizational management, grant writing and fundraising, staff training, human resources and support services, and in their communications with their boards, with their investors, their stakeholders, and with their communities. Toward that end, our approach is simple: If it works, we will use it, and we hope that organizations will feel free to adapt these concepts and tools to their own needs and circumstances.

With neither reference nor deference to brand, origin, or traditional area of application, we have searched for tools nonprofit organizations are using or potentially could use, to increase organizational and/or programmatic effectiveness. Also seeking examples of nonprofit and governmental organizations that have successfully been using these tools, we cite these examples as small case studies. We hope to show practitioners how others facing the same challenges they face have successfully made outcomes work for them, and how they have used outcome-based tools to address their needs. Through the use of worksheets and examples, we offer structured guidance on the use of these tools, and on filling the reader’s individual toolbox for his or her program or organization.

We intend this book to appeal to a broad audience. While anticipating that readers will include nonprofit leaders and middle managers in the traditional areas of social and human direct services, our underlying message is that outcomes are for everyone in the nonprofit world. It is our firm belief, shared by colleagues and leaders throughout the outcomes field, that the areas of advocacy, the visual and performing arts, community renewal and preservation, education, environmental protection, and conservation, and economic and community development can all benefit from the application of an outcomes perspective to their work. Beyond these audiences, we hope to appeal to the capacity builders upon whom so much of the nonprofit world depends, the program officers and other intermediaries, trainers, and consultants, funders and investors in government and philanthropy. Finally, we hope that university professors and other specialists in nonprofit management will take note of what we have done here and will find some use for it in their work.

In the end, whether you call it a Toolbox, an arsenal, a quiver, a cabinet, or a Utility Belt, our goal is for the reader to have his or her own readily accessible collection of approaches, tools, and outcome-based gismos to apply to the programmatic, administrative, and managerial challenges they will face. It was to help assemble this sort of collection that we wrote this book.

PART ONE

THE BASICS

CHAPTER ONE

APPROACHING OUTCOMES

A horizon is nothing but the limit of our sight

—Rossiter Raymond

CHAPTER HIGHLIGHTS

Outcomes: The Third Stage of ManagementContrasting the Outcomes Approach with: The Problem ApproachThe Activity ApproachThe Process ApproachThe Vision Approach

For all the attention on outcomes in the social sector today, the casual observer might be tempted to think that the idea of outcomes and management toward them is self-evident and something that practitioners easily understand, adopt, and use in many or most of the facets of their programs or organizations. Experience, however, tells us a different story, because the fact is that the outcomes idea is not only a relatively recent arrival on the management scene, but that it also runs counter to the ways in which many people and organizations traditionally think about and approach problems, challenges, and even opportunities. To introduce people to the concept of outcomes, therefore, it is often helpful to begin by putting the ideas of outcomes and outcome management into a context that shows not only their evolutionary origin, but also their contrast to some traditional ways of thinking.